Microdisplay-based rear-project TVs (MDTVs) got considerable attention at the 2006 Consumer Electronics Show. Five demonstration systems were on display, and the first of the commercial products will be available by the middle of 2006. Laser-based MDTVs will follow in approximately two years. Developers want to replace the current high intensity arc lamps called ultrahigh performance (UHP) lamps with solid-state sources such as LEDs and lasers. In retail, MDTVs are quickly becoming more popular with consumers than CRT-based rear-projection TVs, but must compete with plasma display TVs and LCD TVs in the over-40-inch market. MDTVs still have some cost advantages, but those advantages are dwindling. Therefore, developers need new innovations to avoid loss of market share, and LED and laser sources are entering the picture. LED or laser illumination has significant and genuine advantages, including longer light source life, 120% of the NTSC color gamut, and instant-on operation. Other advantages are mercury-free parts, lower power consumption, and cooler operation. Among topics covered are the new ways that projection systems with lasers can be created, concerns for laser illumination (speckle, cost, and safety), and the higher cost of LEDs. Products from Luminus Devices, Akai, Samsung, Hewlett-Packard (HP), JVC, Sanyo, and Novalux, are highlighted. For instance, Novalux showed two MDTV laser-based prototypes and a reference UHP-based MDTV.